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    Economies and Diseconomies of Scale or Internal and External Economics

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    Fanuel Kasinja
    Economies of scale refer to cost advantages that businesses obtain due to expansion. As businesses grow in size and output, their long-run average costs may fall due to factors such as specialization, bulk purchasing discounts, and spreading fixed costs over more units of output. However, very large businesses may experience diseconomies of scale, where average costs begin to rise again due to issues like higher coordination costs, declining worker productivity, and greater difficulty adapting to change.

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    Economies and Diseconomies of Scale or Internal and External Economics

    Uploaded by

    Fanuel Kasinja
    12 views16 pages
    Economies of scale refer to cost advantages that businesses obtain due to expansion. As businesses grow in size and output, their long-run average costs may fall due to factors such as specialization, bulk purchasing discounts, and spreading fixed costs over more units of output. However, very large businesses may experience diseconomies of scale, where average costs begin to rise again due to issues like higher coordination costs, declining worker productivity, and greater difficulty adapting to change.

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    EDE

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    Economies of scale refer to cost advantages that businesses obtain due to expansion. As businesses grow in size and output, their long-run average costs may fall due to factors such as specialization, bulk purchasing discounts, and spreading fixed costs over more units of output. However, very large businesses may experience diseconomies of scale, where average costs begin to rise again due to issues like higher coordination costs, declining worker productivity, and greater difficulty adapting to change.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    12 views16 pages

    Economies and Diseconomies of Scale or Internal and External Economics

    Uploaded by

    Fanuel Kasinja
    Economies of scale refer to cost advantages that businesses obtain due to expansion. As businesses grow in size and output, their long-run average costs may fall due to factors such as specialization, bulk purchasing discounts, and spreading fixed costs over more units of output. However, very large businesses may experience diseconomies of scale, where average costs begin to rise again due to issues like higher coordination costs, declining worker productivity, and greater difficulty adapting to change.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
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    Economies And Diseconomies Of Scale

    Or
    Internal and External Economics
    Diseconomies Of Scale

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